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PEPE price noted a decline over the past few days, but this dip has likely been setting up the meme coin for a rise.
Additionally, with whales behaving in accordance with similar historical instances, the potential is strengthening.
Pepe Whales Choose to Dump
PEPE price tends to be significantly impacted by its whale addresses. These investors tend to hold the most supply of an asset. Generally, whale selling is considered a bad sign as it exhibits a lack of confidence.
However, in the case of PEPE, it is the opposite. The supply held by top non-exchange addresses over the last five days has declined by 2.5 trillion PEPE. This supply is worth nearly $20 million and is currently signaling optimism.
Historically, PEPE whale selling has been followed by a sharp increase in price. The larger the selling, the higher the rally. The same is also expected this time since whales can already be seen selling.
This is the first signal that a rally could be next.
Secondly, PEPE holders are at a crucial junction of profits, which could keep them motivated to remain bullish. Over 79 trillion PEPE worth $623 million bought is awaiting profits. Bought between $0.0000070 and $0.0000099, this chunk would become profitable as soon as PEPE hits a new all-time high.
Read More: How To Buy Pepe (PEPE) and Everything You Need To Know
Since this is one of the largest chunks of supply dangling in uncertainty, investors would likely be incentivized to prevent from selling. Consequently, the PEPE price would be noted to increase.
PEPE Price Prediction: Another 27% Rise Likely?
PEPE price trading is currently above the critical support of $0.0000077. The meme coin will likely head towards completing the 60% rally it was anticipated to witness. This target was set by the descending wedge PEPE was in before breaking out two weeks ago.
Despite the rally, PEPE did not successfully achieve the target and is still 27% away from $0.0000100. Given the aforementioned factors, the meme coin could complete this rally this time to secure $0.0000100 as support.
Read More: Pepe (PEPE) Price Prediction 2024/2025/2030
However, if the support of $0.0000077 is lost, the PEPE price could fall to $0.0000063. Losing this support would invalidate the bullish thesis, resulting in extended losses for investors.